Co-integration Analysis on Fixed Assets Investment and GDP Growth of Jiangsu Province

摘要

based on data from 1978 to 2008, this paper analyzes the dynamic relationship between fixed assets investment and the GDP growth of Jiangsu province by using unit root test, co-integration test, error correction model and Granger causality test, of which the results suggest that long-term dynamic co-integration relationship, short-term correction mechanism and two-way Granger causality relationship exist between FAI and GDP growth of Jiangsu Province. Besides, this paper also finds that FAI has significant lagged effect on GDP of Jiangsu Province. It proves that short-term demand effect and long-term supply effect exist between FAI and GDP of Jiangsu Province.